PARLIAMENTARY WRITTEN QUESTION
(12 June 2025)

To ask the Chancellor of the Exchequer, with reference to box 4.A of the Spending Review 2025, published on 11 June 2025, how much of the financial transactions set out in the document are additional to the quantum which was assumed at Autumn Budget 2024; and what estimate her Department has made of the potential impact of this additional activity on (a) public sector net cash requirement, (b) public sector net debt, (c) public sector net debt excluding Bank of England, (d) central government debt interest spending and (e) overall gilt issuance for each financial year up to and including 2029-30, compared to the forecasts published at Spring Statement 2025.

Asked by:
Sir Mel Stride (Conservative)

At the Budget last Autumn, the government set out a clear fiscal strategy to stabilise the public finances and underpin growth. This involved introducing new fiscal rules which provide stability, put the public finances on a sustainable path and ensure our public services are sustainably funded.

The fiscal rules set in the Autumn have supported the step change needed in investment, kick starting a decade of national renewal. For the first time, the fiscal rules recognise where financial assets generate future returns. At SR25, the government allocated an additional £9.6 billion in financial transactions to good value-for-money investment opportunities identified through the Spending Review process, subject to the robust guardrails set out in the financial transaction control framework.

The Treasury does not publish forecasts of the economy or public finances; the Office for Budget Responsibility (OBR) is the UK’s official forecaster and provides independent analysis of the UK’s public finances. In its March forecast, the OBR confirmed that the government is on track to meet its fiscal rules, thanks to decisive action taken by the government to put the public finances on a sustainable trajectory and grow the economy.

The OBR will publish an updated forecast later this year in the usual way.

Answered by:
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